In an interview with Italian media, La Stampa, Donatella Versace, Creative Director of the luxury label, explained the reasons that led her to accept the label’s acquisition by Michael Kors Holdings. “The change is radical. Versace is a great iconic brand with a unique history, known throughout the world. But to remain this way even when I’m gone, it needed investment. Today, large family-owned companies do not count as they once did because the world has changed, there is technology, there are large groups such as LVMH and Kering”, she said.
Through the acquisition, Versace expects major changes for the better, including more investments in marketing, in technology with a digital platform designed by Bill Gates, and more factories, especially for handbags and shoes. The label says it is among the few in the luxury sector to make the bulk of its turnover only on clothes, but that it is now seeking to expand the accessories range, which have so far been outsourced. “The ‘Made in Italy’ label is a very important value that gives enormous growth prospects. We will open two companies for accessories, such as shoes and bags, and about one hundred shops in a year and a half,” Donatella Versace told La Stampa.
Versace’s acquisition by Michael Kors, now renamed Capri Holdings, was officially announced on September 25. As previously reported by ILM, the New York based holding aims to increase the number of Versace retail units from 200 to 300 stores and to more than double turnover to US$2 billion, partly by boosting the percentage of footwear and accessories, which constitutes 35% to 60% of revenues.
Source: La Stampa